Tetra Tech's (TTEK) 11.8% YTD Gain Raises Longevity Questions
Shares of Tetra Tech, Inc. TTEK have rallied 11.8% in a year, outperforming the industry’s 2.9% increase. The upside can be linked to an increase in international development works and high-performance building work worldwide. Handsome rewards to shareholders are also expected to have driven the stock higher.
What’s Aiding TTEK?
Growth in broad-based water and environmental programs and an increase in international development work, especially for Ukraine energy programs are aiding Tetra Tech’s Government Services Group segment. The Commercial / International Services Group is benefiting from growth in renewable energy programs, environmental work all across the U.S. and high-performance building work worldwide.
TTEK’s measures to expand operations through asset additions support its top-line growth. The acquisition of RPS Group plc in January 2023 enhanced Tetra Tech’s consultancy in water, environment and sustainable infrastructure, expanded its water practice in the United Kingdom and strengthened its foothold in renewable energy and environmental management.
The company also acquired Amyx, Inc. in the same month. As a part of the Federal Information Technology division, the Amyx acquisition expanded TTEK’s use of advanced data analytics, cybersecurity, digital transformation and agile software development solutions for its government and commercial customers. Amyx is integrated into TTEK’s Government Services Group.
Image Source: Zacks Investment Research
Tetra Tech’s commitment to handsomely reward its shareholders through dividends and share buybacks are encouraging. In the first six months of fiscal 2023 (ended March 2023), the company distributed dividends totaling $24.4 million. The quarterly dividend rate was hiked 13% in May 2023. Such diligent capital-deployment strategies boost shareholders’ wealth.
Will the Uptrend in Shares Last?
Improving supply chains and strength across end markets are expected to drive Tetra Tech’s bottom line in the quarters ahead. Also, key factors, including U.S. administration priorities, U.S. infrastructure stimulus and TTEK’s focus on climate change on a global basis are expected to drive the company’s performance in the near term.
Zacks Rank & Other Stocks to Consider
TTEK currently sports Zacks Rank #1 (Strong Buy). Some other top-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. IR presently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks.
IR delivered a trailing four-quarter earnings surprise of 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 6.7%. The stock has improved 22.3% in the year-to-date period.
Alamo Group Inc. ALG currently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has increased 29.1% in the year-to-date period.
Axon Enterprise AXON sports a Zacks Rank of 1, at present. The company has a trailing four-quarter earnings surprise of 44.4%, on average.
In the past 60 days, estimates for Axon’s 2023 earnings have increased 13%. The stock has rallied 17.8% in the year-to-date period.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Tetra Tech, Inc. (TTEK) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
Alamo Group, Inc. (ALG) : Free Stock Analysis Report
Axon Enterprise, Inc (AXON) : Free Stock Analysis Report
